Ana Contreras

Name _____________________________ Class _________________ Date __________________ Name _____________________________ Class _________________ Date __________________
Exploration and Expansion Exploration and Expansion
Section 3 Section 3

Section Summary could sell more goods than it bought from other
countries. This created a favorable balance of trade,
THE COLUMBIAN EXCHANGE
meaning that a country received more gold and silver
The arrival of Europeans in the Americas led to
than it paid out. To achieve this, countries used tariffs,
changes in both Native American and European
or import taxes, to make these goods more expensive
culture. A widespread exchange of plants, animals,
and less desirable to the population. They could also
and diseases we call the Columbian Exchange took
make high-priced goods to sell to other countries.
place. New foods from the colonies appeared in
Manufactured goods sold for more than raw materials, What did governments gain
Europe, while colonists brought their familiar foods to from paying subsidies to
so governments paid subsidies or grants to help grow help industries?
the New World. Before contact with the Americas,
industries. Finally, nations could create a favorable
Europeans had not known potatoes, turkey, corn, or _______________________
balance of trade by controlling sources of raw
chocolate, and Native Americans did not have coffee, 4. materials found in their colonies. _______________________
rice, oranges, wheat, sheep, or cattle. Europeans also
What were the long-term Colonies also served as markets for manufactured _______________________
brought horses, which became a new source of labor effects of the Columbian goods. Mercantilists believed that colonies only
and transportation for Native Americans. Exchange?
existed for the benefit of the home country. Economic
This exchange affected societies over time. Crops
_______________________ activity in the colonies was restricted. Colonists could
native to the Americas such as potatoes and corn
_______________________ only sell raw materials to their home nation, and could
became staples in the European diet. Italians began
only buy manufactured goods from there as well. And
1. cooking with tomatoes. And economic activities like _______________________
colonies could not manufacture their own goods.
cattle ranching in Texas would not have happened
In Europe, towns grew as business increased. A
without this exchange. It was not entirely beneficial,
powerful merchant class emerged. But rural life
however. The Irish became so dependent on the potato
continued as it had for centuries, and most people
that when crops failed in the 1840s, millions starved.
remained poor.
Also disastrous was the introduction of new
diseases in the Americas. Native Americans had no What new diseases
2. resistance to European diseases like smallpox, appeared for the first time THE RISE OF CAPITALISM
in the Americas as a result During this period, capitalism emerged. In this
measles, influenza, and malaria. Epidemics following of the arrival of
the Europeans’ arrival broke out again and again. The Europeans? system, most economic activity is carried out by
North American Indian population fell from about 2 individuals or organizations in hopes of making a
_______________________
million in 1492 to 500,000 in 1900. Some new profit. Individuals began to build huge fortunes.
diseases were also introduced to Europe, but they _______________________ Merchants who carried goods between colonies and
were much less deadly. home nations became rich, allowing them to invest in
more ventures. Economic activity increased.
Investors were willing to take these risks because of
MERCANTILISM
inflation, the rise in prices of goods. This was caused
During the 1500s and 1600s, European nations
Why do you think it was by two things: the increasing demand for goods as
developed an economic policy called mercantilism. 5.
important for a country to populations grew, and the introduction of more gold Underline two causes for
The basic principle was that a nation’s strength have a strong military inflation.
and silver into the money supply.
3. depends on its wealth, because money allows a under mercantilism?
If business ventures were too expensive for
country to have a strong military. Wealth meant gold _______________________
individuals, they could buy shares in joint-stock
and silver. Mercantilists believed there was only a
_______________________ companies, earning a portion of the profit if it was
fixed amount of wealth in the world, so for one nation
_______________________ successful and only losing as much as they invested if
to become wealthy, it had to take wealth and power
it failed. The Virginia Company was a joint-stock
from other nations. A nation could build wealth in two _______________________
company which paid to establish the colony of
ways: it could extract gold and silver from mines, or it
Jamestown in 1607.
Original content Copyright © by Holt, Rinehart and Winston. Additions and changes to the original content are the responsibility of the instructor. Original content Copyright © by Holt, Rinehart and Winston. Additions and changes to the original content are the responsibility of the instructor.
Full Survey Chapter 16 192 Interactive Reader and Study Guide Full Survey Chapter 16 193 Interactive Reader and Study Guide